WHITE SULFUR SPRINGS, W.Va. -- If FCC staff could change communications law, they'd get the agency Sunshine Act relief, many said when asked at an FCBA seminar here for their “wish lists” for Congressional action. Another top wish: Expanding Universal Service Fund contributions by including intrastate and interstate revenue, now barred by statute. Both changes are pending in a bill introduced by Senate Commerce Committee Chmn. Stevens (R-Alaska).
The satellite industry hailed language deep in a telecom bill by Sen. Stevens (R-Alaska) that would strengthen the satellite industry’s hand in 2 arenas where it claims unique utility: disaster communication and rural broadband deployment. If the bill’s satellite provisions survive conference, “it’s a big win for the satellite industry,” Satellite Industry Assn. (SIA) Exec. Dir. David Cavossa.
Rural telcos want a wider contribution base for the universal service fund, plus support for broadband deployment, according to Wed testimony before the House Subcommittee on Rural Enterprises. Groups lauded the approach in a bill (HR-5072) by Reps. Terry (R-Neb.) and Boucher (D-Va.) that would require all 2-way voice services to contribute, create a fund for broadband deployment in unserved areas and put a limit on the fund’s growth.
TracFone disagrees with CTIA over the group’s support for a numbers-based USF contribution method, the CTIA member told the FCC. “A numbers-based contribution methodology would dramatically increase the USF contribution obligations on providers of prepaid wireless services, and, more importantly, on consumers of those services who are typically low volume, often low income, consumers,” TracFone said in its own filing.
A bill to create a market-oriented, competition-based communications regulatory system was introduced Thurs. at our deadline by Sen. DeMint (R-S.C.). Under it, communications firms would be regulated like other businesses, to protect consumers and ensure there’s no unfair competition, he said. Services alike from a consumer’s perspective would be treated alike. As such, phone service offered by a cable, land line or wireless firm would come under standard rules. The USF program would be reformed so all service providers contribute equally and funds go out more efficiently, transparently and in a technologically neutral way. Cable TV franchises would be phased out over 4 years. States’ enforcement roles would be preserved, preserving their authority to protect consumers and manage public rights-of-way. “We can no longer force a modern, dynamic industry to operate on archaic rules that destroy job creation, limit consumer choice and needlessly raise prices,” DeMint said. He urged Congress to “wake up” to the fact that today’s rules date to the days of rotary phones.
Prospects are good for passage of a telecom bill the President can sign this Congress, House Telecom Subcommittee Chmn. Upton (R-Mich.) told a Tues. National Journal breakfast. “Their bill is not all that far away from ours,” Upton said, referring to a Senate telecom bill introduced Mon. (CD May 2 p1). That bill, especially its franchise provision, offers a “hook” to get something into conference where the 2 can be reconciled, Upton said.
Senate Commerce Committee Chmn. Stevens (R-Alaska) Mon. introduced a telecom bill reflecting several members’ input but lacking strong Democratic support. The 10-title bill hits Universal Service Fund (USF) reform, municipal broadband, net neutrality, white spaces and broadcast flag, and would close the terrestrial loophole for cable. Bell companies applauded the Stevens bill.
The FCC is close to issuing an order classifying prepaid calling card services as telecom services subject to Universal Service Fund contributions and access charge payments, Medley Global Advisors said last week. The proceeding grows out of a Feb. 2005 FCC decision that AT&T had to make universal service contributions and pay intrastate access charges on revenues from an enhanced prepaid calling card. AT&T said its enhanced card was an information service, but the FCC ruled it a telecom service and subject to payments.
CenturyTel had $72.42 million in Q1 profit, down year- over-year from $79.99 million in Q1 2005. CenturyTel got its operating cash flow margin down to 48.8% from 51.9% in Q1 2005, “principally driven by the growth in revenues with lower margins,” like high-speed Internet, fiber transport and CLEC services, and the “decline in higher margin revenues” like those from USF and access lines, it said. Q1 profit figures include about $7 million in debt retirement by the service provider.
The FCC fined Northbrook, Ill.-based Globcom $715,000 for not paying into the Universal Service Fund or Telecom Relay Service Fund and not filing accurate revenue information on which payments are assessed. The FCC in late 2003 warned Globcom, a reseller of long distance telecom service, that it owed more than $681,000. The FCC said Globcom responded that it owed about that because its revenue filings were overstated through negligence. Communication between the FCC and Globcom continued since then. The FCC sought more information, for example on whether enough of Globcom’s revenue is international to reduce its payments into the funds. Globcom, meanwhile, missed filing deadlines. “Despite Globcom’s admission that it owes at least some portion of the invoiced amounts to the USF, and despite [a commitment] to make such payments to the universal service and TRS funds, Globcom has paid nothing to either fund since February 2003,” the FCC said. “In addition… the company has failed to file a single timely report” since the FCC issued the warning notice in 2003.